HRS §667-30
What happens if the winning bidder backs out of a foreclosure sale
If the winning bidder at a foreclosure sale does not follow the sale rules or does not finish buying the property within 45 days, the bidder loses the downpayment. The foreclosing mortgagee uses that money to pay its own legal fees and costs, then the sale costs, and any leftover goes toward what the borrower owes. The mortgagee can then either accept the next highest bidder's offer or start the sale over.
buyersmortgage lenders
The statute, as written — Successful bidder's failure to comply; forfeiture of downpayment
If the successful bidder later fails to comply with the terms and conditions of the public sale or fails to complete the purchase within forty-five days after the public sale is held, the downpayment shall be forfeited by that bidder. The forfeited downpayment shall be credited by the foreclosing mortgagee first towards the foreclosing mortgagee's attorney's fees and costs, then towards the fees and costs of the power of sale foreclosure, and any balance towards the moneys owed to the foreclosing mortgagee. The foreclosing mortgagee, in its discretion, may then accept the bid of the next highest bidder who meets the requirements of the terms and conditions of the public sale or may begin the public sale process again.
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